Study Abroad Loan

How does a falling rupee affect you?

Be prepared to pay more if travelling abroad or if your child is studying there. Other impacts can be varied.Your family and you are flying to the US next

week on holiday. Flight tickets and hotel bookings were done in

advance. So, why should the rupee depreciation bother

you? It should because all other expenses, such as

sightseeing, local transfers and food will increase as a result of the fall in the rupee.

There are also some advantages of a falling rupee.Those working abroad will gain, as the same

amount they remit will translate into more rupees. “It looks like the rupee will be in the 64-65 range

(to the dollar).As the rupee tends to be overvalued and exports

are not growing much, the Reserve Bank might be willing to let the rupee depreciate,” says MadanSabnavis, chief economist, CARE Ratings.The immediate impact will be on foreign travel

and students studying abroad.

Foreign travelEurope tours are popular with Indians in the

summer months of April to June.Most people book in October for departures

starting in April.Those who have booked and paid earlier,

including the forex component, will not feel much of an impact.However, travellers who don't pay the forex

component in advance might feel the pinch. Usually, travellers pay the deposit and for flight tickets in rupees, in advance.

Foreign education Students studying abroad also suffer when the rupee

falls. The US, Britain, Canada, Singapore and Australia are

popular countries for Indian students. The university will not offer any leeway in tuition

fees. Students will have to pay the entire amount. In most cases, you will have to pay before a term

starts.Given the high tuition fees in foreign universities and

the cost of living, most students take some loan and pay for the rest by scholarships or taking a part-time job.

So, if the fees increase in the third semester, we can increase the Study Abroad Loan amount,” he advises.

Saxena suggest students going abroad should look for scholarships or part-time jobs like teaching assistantships.

“We find of the Rs 30-35 lakh (Rs 3-3.5 million) required for a foreign university course, students often are able to earn Rs 800,000-10 lakh (Rs 1 million) through part-time jobs, which pay by the hour,” he says.

Source: http://www.rediff.com/business/report/perfin-how-does-a-falling-rupee-affect-you/20150518.htm

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